Bitcoin has soared again, breaking through $76,000, reaching a historic high of $76,836. After Trump announced his victory, news spread in the community about SEC Chairman Gary Gensler being investigated by senior Republican lawmakers.
The Republican Party has gained control of the Senate and leads the Senate elections with 210 votes, while Trump approaches a third consecutive victory.
As of Friday in Asia, the U.S. House elections remain undecided, but the Republican Party leads the Democrats with 210 votes to 198, needing 218 to gain control of the majority. However, Trump has secured victory in the presidential election, and the Republican Party has announced control of the Senate majority.
Bitcoin Technical Analysis
Economies.com stated that Bitcoin prices show negative trading to test the breakout resistance of the bullish channel appearing on the chart, and prices need to consolidate above these areas, which is a primary condition for continuing the anticipated bullish trend for future periods, targeting $78,000 as the next main station.
On the other hand, we should note that falling below $75,000 and then dropping to the level of $73,820 will halt the bullish trend and expose prices to corrective bearish pressure.
'The current expected trading range is between a support level of $73,800 and a resistance level of $78,000.'
Keith Gill, the legendary retail investor known as 'Roaring Kitty', tweeted: 'Breaking news, Gensler is under investigation.'
Observing community trends, several accounts labeled as opinion leaders (Twitter blue checkmarks) have coincidentally published the same message, stating that Gensler is under investigation by senior Republican lawmakers.
A closer examination reveals that this news actually originated in September, when Fox News reporter Eleanor Terrett stated that Gensler was under investigation by senior Republican lawmakers, including Jim Jordan, Patrick McHenry, and James Comer, for alleged political favoritism in the hiring process.
This news resurfaced in the eyes of the crypto market after Trump's victory.
Trump promised before the election that he would fire Gensler once he took office.
Eleanor tweeted that she had contacted the SEC to inquire whether Gensler plans to end his tenure by the end of this year or resign before Trump's inauguration in January 2025, but the SEC spokesperson did not respond.
It's worth noting that although the U.S. President does not have the power to directly fire Gensler from the SEC, typically, past chairs of the agency follow Washington tradition and choose to resign on or before the inauguration day of the new president.
Bloomberg reported on Thursday that after Trump took office, the SEC's enforcement on cryptocurrencies will be significantly reduced.
The article states that the crypto industry has invested millions of dollars in presidential and congressional campaigns, but its most notable electoral victory might be Gensler's departure. This former Goldman Sachs banker led the most stringent regulatory crackdown on the digital asset industry, filing dozens of lawsuits against crypto companies and traders of all sizes, including financial giant Coinbase Global Inc. and proprietary trading firm DRW Holdings LLC.
President Trump's decisive victory almost guarantees the rollback of cryptocurrency-related enforcement after he takes office. In July, Trump promised to fire Gensler on the first day of his second administration during the Bitcoin 2024 conference in Nashville.
The SEC often boasts about its successful court rulings, which align with its view that decades-old securities laws apply to the emerging category of digital assets. It has also imposed hefty fines on some major companies in the industry. In April of this year, the agency won a huge fine of $4.5 billion from stablecoin issuer Terraform Labs and founder Do Kwon. The agency has yet to release its annual enforcement report for fiscal year 2024, but according to a report by consulting firm Cornerstone Research, the agency initiated 46 such cases in the previous year, an increase of over 50% from the year before.
JW Verret, a professor at George Mason University's Antonin Scalia Law School in Arlington, Virginia, stated: 'Some cryptocurrency cases are legitimate fraud cases, and I hope these cases continue. I hope we can uncover more such cases. Many cryptocurrency cases are just registered, and in cases where registration is not possible, they are fault cases.'
The next SEC chair is expected to push for new regulations to amend existing securities laws or allow digital asset companies to comply with the rules that Gensler has long warned they are violating. This will also help control enforcement.
With the Senate firmly under Republican control, the prospects for bipartisan cryptocurrency legislation supporting this goal are brighter. Jack Inglis, CEO of the Alternative Investment Management Association, stated: 'We expect the Trump administration and the new Congress to have a more constructive approach to cryptocurrency regulation.' The association is a trade organization based in London representing hedge funds and private equity firms.
This means that policy recognizes the need to embed cryptocurrencies within a broader financial services framework while considering the technological differences from traditional finance, thus taking a more customized approach in many areas,' he said.
Summary of the SEC's investigation into major cryptocurrency companies:
